Coinbase's Biometric Data Collection Reignites User Privacy Concerns

As confidence in centralised platforms weakens, decentralised tools like Best Wallet are emerging as a leading contender for the best crypto investment in 2025.

Coinbase’s latest legal troubles over biometric data collection have pushed retail investors toward decentralised tools that respect user privacy, leading to a surge in interest in Best Wallet.

Coinbase is facing a class-action lawsuit filed by Illinois residents who allege that the crypto exchange violated the state’s Biometric Information Privacy Act (BIPA).

According to the lawsuit, users were asked to upload a selfie and government ID during the signup process for Coinbase. This was then used to scan and analyse their facial geometry via third-party vendors without their explicit consent.

The plaintiffs claim that the data was collected and used for purposes that were not disclosed to users, and that it was shared with outside parties such as Jumio, Onfido, Au10tix, and Solaris.

With over 10,000 users allegedly impacted, the group is seeking damages ranging from $1,000 to $5,000 per violation, plus legal costs. This follows May 2023 legal action concerning the platform’s use of facial recognition.

Coinbase has also been hit with multiple class-action lawsuits following a data breach that saw customer support agents sell user data for profit.

A Privacy Time Bomb and Growing Market Distrust

Nanak Nihal Khalsa, co-founder of Holonym – a privacy-focused identity project – said the Coinbase case demonstrates the broader dangers of centralising personal data.

“The Coinbase breach proves what we’ve known all along. KYC without zero knowledge is a privacy time bomb. You can’t warehouse millions of identities without becoming a target. Sadly, it was predictable. As platforms grow, they become noisier, weaker, and more vulnerable to attack. This is a natural law that applies to protocols and people alike. But we can choose to build differently,” Khalsa stated.

Khalsa’s critique cuts to the heart of the issue: as platforms grow, so does the risk they pose. With growing consumer awareness around data privacy, many are now turning to self-custodial crypto wallet solutions as safer alternatives. For investors looking for the best crypto investment this year, tools that combine user control with functionality are gaining traction.

Best Wallet Emerges as a User-Controlled Alternative

Enter Best Wallet – a non-custodial, multi-chain wallet that has rapidly drawn attention amid Coinbase’s privacy scandal.

Designed to give users full control over their assets without sacrificing convenience, the wallet supports over 60 blockchains and offers trading, staking, and NFT management all in one app.

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Unlike Coinbase or other centralised platforms, Best Wallet does not require users to submit personal information to get started. No KYC means no biometric data to store, leak, or misuse. That appeal is translating to real traction: the project recently surpassed $12 million in presale funding, with users flocking to buy the native BEST token before it lists on exchanges.

Why Analysts Are Bullish on Best Wallet

The platform is more than a digital vault. Best Wallet integrates a decentralised exchange aggregator to let users swap tokens at the best market rate without needing to leave the app. A built-in token presale hub called “Upcoming Tokens” gives users early access to new project launches, some of which are not covered by other platforms.

This is especially useful in the burgeoning Web3 gaming sector, where new tokens and projects are launching frequently.

Security features include two-factor and biometric logins, dApp blocklists, and token-approval alerts. This reassures investors who may be wary about the security of online platforms after the Coinbase data breaches and the theft of user funds from protocols like Poly Network.

The native BEST token ties everything together. Holding BEST unlocks reduced fees, early presale access, and staking yields currently estimated at over 120% annually. This utility, combined with the wallet’s growth and security-first design, is what has led analysts like Austin Hilton to call Best Wallet the “best crypto wallet” available today.

“If you’re looking for the best crypto investment this year, I’d say look no further than Best Wallet. It’s packed with features that traders and long-term investors will love, and the token has incredible potential,” Hilton said.

Competitive Landscape and the Road Ahead

While Best Wallet is still new, it’s already being compared with heavyweights like MetaMask, Trust Wallet, and even centralised exchanges like OKX and Bitget.

MetaMask users often find themselves restricted to Ethereum-based assets unless they manually add other chains. In contrast, Best Wallet is built for a multi-chain future, integrating Bitcoin, Solana, Ethereum, and more.

Trust Wallet supports a broad range of tokens but lacks the presale perks or token utility of BEST. OKX and Bitget, while offering vast markets and products, are tied to centralised ecosystems and do not offer the same degree of asset control